Five steps to take before cutting your hours to avoid pensions tax

The new pension lifetime allowance of £1.25m will mean that generally, any GP retiring from the 1995 section of the NHS pension scheme with a pension of over £54,347 will have to pay a lifetime allowance (LTA) tax charge. AISMA accountant Faye Armstrong weighs up the pros and cons for GPs thinking of working fewer hours to reduce the risk of incurring the LTA pension tax charge. Go to the Pulse website to find out more.